DECREE OF MINISTER OF MANPOWER AND TRANSMIGRATION REPUBLIC OF INDONESIA NUMBER: KEP.100/MEN/VI/2004 REGARDING PROVISIONS ON THE IMPLEMENTATION OF CERTAIN TIME WORK AGREEMENT

MINISTER OF MANPOWER AND TRANSMIGRATION

REPUBLIC OF INDONESIA

 

DECREE OF MINISTER OF MANPOWER AND TRANSMIGRATION

REPUBLIC OF INDONESIA

 

NUMBER: KEP.100/MEN/VI/2004

REGARDING

PROVISIONS ON THE IMPLEMENTATION OF CERTAIN TIME WORK AGREEMENT

 

MINISTER OF MANPOWER AND TRANSMIGRATION

REPUBLIC OF INDONESIA

 

Considering: a. that as the implementation of Article 59 paragraph (8) of Law No. 13 regarding Labor, should be regulated on a specific time employment agreement.

b. that for it need to be stipulated by decree of the Minister.

 

In view of: 1.    Law Number 3 Year 1951 regarding the Validity Statement Control Act of Labor Year 1948 Number 23 of the Republic of Indonesia for the whole of Indonesia (State Gazette Year 1951 Number 4).

2. Law Number 22 Year 1999 regarding Regional Government (State Gazette of the Republic of Indonesia Year 1999 Number 60, Supplement to State Gazette Number 3839).

3. Law Number 13 regarding Labor (State Gazette of the Republic of Indonesia Year 2003 Number 39, Supplement to State Gazette Number 4279).

4. Government Regulation Number 25 Year 2000 regarding Government Authority and Provincial Authority as Autonomous Regions (Statute Book Republic of Indonesia Year 2000 Number 54, Supplement to State Gazette Number 3952)

5.         Decree of the President of the Republic of Indonesia Number 228 / M Year 2001 regarding “Gotong Royong” Cabinet Formation.

 

Observing: 1. The main Idea of Secretariat of the National Tripartite Cooperation Institution on 6 April 2004.

2.         Agreement of Plenary Meeting by National Tripartite Cooperation Institution on May 19, 2004.

 

DECIDE:

To Stipulate:     DECREE OF MINISTER OF MANPOWER AND TRANSMIGRATION REPUBLIC OF INDONESIA REGARDING PROVISIONS ON THE IMPLEMENTATION OF CERTAIN TIME WORK AGREEMENT

 

CHAPTER I

GENERAL PROVISIONS

 

Article 1

In this Ministerial Decree the following definitions shall apply:

1. Fixed-term employment agreement, hereinafter referred to as PKWT, is employment agreement between the workers / laborers with employers to make employment relationship in a particular time or for certain workers.

2. Indefinite-term employment agreement, hereinafter referred to as PKWTT, is employment agreement between the workers / laborers with employers to conduct employment relationship that is permanent in nature.

3. Employers shall be:

a. An Individual, partnership, or legal entity that runs a self-owned company.

b. An Individual, partnership, or legal entity that independently runs a company which they do not own.

c. An individual, partnership or legal entity located in Indonesia and representing a company as referred to in points a and b and which is domiciled outside the territory of Indonesia.

4. Company shall be:

a. Any form of business, whether or not a legal entity, owned by an individual, partnership or legal entity, private or state-owned, which employs employees by paying a salary or compensation in another form;

b. Social and other businesses which have a management and employ other persons by paying a salary or compensation in another form.

5. Employee shall be any person working in return for a salary or compensation in another form.

 

Article 2

 

1. Employment terms agreed in PKWT should not be lower than the provisions in applicable laws and regulations.

2. Minister may stipulate special PKWT provisions for certain business sectors or jobs.

 

CHAPTER II

PKWT FOR WORK WHICH IS DONE ONCE OR IS TEMPORARY IN NATURE THAT IS TO BE COMPLETED AT MOST THREE YEARS.

 

Article 3

1. PKWT for work which is done once or is temporary in nature is PKWT based on the completion of certain work.

2. PKWT as referred to in paragraph (1) made for a maximum of 3 (three) years.

3. In case of certain work agreed in PKWT as referred to in paragraph (1) can be completed faster than agreed, then PKWT end by law upon the completion of work.

4. In PKWT based on the completion of certain work, must be included the limitation of a work stated finished.

5. In case PKWT was made based on completion of certain work but because of certain conditions that work has not yet been finished, PKWT renewal can be done.

6. Renewal as referred to in paragraph (5) conducted after exceeding 30 (thirty) days grace period after the end of the employment agreement.

7. During the 30 (thirty) days grace period as referred to in paragraph (6), there is no employment relationship between the workers / laborers and employers.

8. The parties can arrange other than the provisions on paragraph (5) and paragraph (6) set forth in the agreement.

 

CHAPTER III

PKWT FOR WORK IS THAT IS SEASONAL IN NATURE

 

Article 4

1. Work that is seasonal in nature is a work that the implementation depends on season or weather.

2. PKWT conducted for work as referred to in paragraph (1) can only be performed for one type of work in a particular season.

 

Article 5

1. Works that must be done to fulfill order or specific targets can be done with PKWT as a seasonal work.

2. PKWT conducted for work as referred to in paragraph (1) only applied to workers / laborers who perform additional work.

 

Article 6

Employers who employ workers / laborers based on PKWT as referred to in Article 5 shall make a list of workers / laborers who perform additional work.

 

Article 7

 

PKWT as referred to in Article 4 and 5 can not be renewed.

 

CHAPTER IV

PKWT FOR WORK RELATED TO NEW PRODUCTS

 

Article 8

1. PKWT can be done with workers / laborers for work related to new products, new activities, or additional products which are still at the experimental or trial stage.

2. PKWT as referred to in paragraph (1) can only be done for a maximum period of 2 (two) years and may be extended once for a maximum 1 (one) year.

3. PKWT as referred to in paragraph (1) can not be renewed.

 

Article 9

PKWT as referred to in Article 8 can only be applied to workers / laborers who perform work outside regular activities or work done by the company.

 

CHAPTER V

DAILY OR CASUAL EMPLOYMENT AGREEMENT

 

Article 10

1. For certain works which is changing in terms of time and volume of work and wages are based on attendance, can be done with daily or casual employment agreement.

2. Daily or casual employment agreement as referred to in paragraph (1) conducted under the term that workers / laborers worked less than 21 (twenty one) days in 1 (one) month.

3. In case workers / laborers worked 21 (twenty one) days or more for 3 (three) consecutive months or more then the daily or casual employment agreement turn into PKWTT.

 

Article 11

Daily or casual employment agreement that comply with the provisions as referred to in Article 10 paragraph (1) and paragraph (2) excluded from the PKWT period provisions in general.

 

Article 12

1. Employers who employ workers / laborers for work as referred to in Article 10 shall make daily or casual employment agreement in writing with the workers / laborers.

2. Daily or casual employment agreement as referred to in paragraph (1) can be made in the form of a list of workers / laborers who do the work as referred to in Article 10 that at least contains:

a. name / address of company or employer.

b. name / address of workers / laborers.

c. type of work performed.

d. the amount of salary and / or other compensation.

3. List of workers / laborers as referred to in paragraph (2) submitted to the institution which is responsible in the field of local manpower no later than 7 (seven) business days since workers / laborers were hired.